Delays in LC payments increase financial, time burdens on firms: Japan envoy

Japanese Ambassador in Dhaka Iwama Kiminori said delays in import bill payments are often encountered in Bangladesh, which increase the financial and time burdens on companies and thus require immediate steps.

"We do hope these problems will be fairly addressed by the government soon, and we are ready to continue to work together," he said at the 12th Networking Program of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) at a city hotel on Sunday.

The programme, sponsored by Arab Bangladesh Bank Limited, was moderated by Md Emran, executive director of the JBCCI and former additional secretary to the government of Bangladesh.

Iwama Kiminori said that in order to realise more and more new investments from foreign countries, including Japan, Bangladesh has to pay close attention to the management of its macroeconomics.

"To recover the country's macroeconomics, going back to the common target and aspiration to induce more investment in Bangladesh from Japan, we need to emphasise the need to improve further to lure more Japanese investors," he added.

After Prime Minister Sheikh Hasina's visit to Japan at the invitation of her Japanese counterpart Kishida Fumio, Iwama Kiminori said that Bangladesh and Japan have successfully elevated their bilateral relations to a "Strategic Partnership" from the existing "Comprehensive Partnership".

He said Bangladesh needs to take two key steps to address the challenges it is likely to face after its LDC graduation in 2026.

According to him, Bangladesh must first improve its investment and business environment to attract more Japanese companies, as they may not consider it an investment-friendly destination otherwise.

The ambassador identified lengthy approval procedures and bureaucratic delays, as well as duties, as the primary obstacles to attracting Japanese investments.

Secondly, Bangladesh needs to sign the proposed Economic Partnership Agreement (EPA) to enjoy duty-free market access to Japan, he added.

Iwama Kiminori noted that there are many issues that need to be negotiated before concluding an EPA by 2026, making it very difficult. He suggested that Bangladesh make the necessary preparations to face post-LDC graduation challenges on time.

"I hope that trade and investment between Bangladesh and Japan will increase in the coming days, and our relationship will strengthen as well," he said at the networking session.

He also said the JBCCI's attempt to promote bilateral trade relations is very important. He expressed sincere wishes for the prosperity of the two countries and the further deepening of the relationship between the people of Japan and Bangladesh.

Myungho Lee, president of JBCCI (Country Representative of Bangladesh and General Manager at Mitsubishi Corporation Dhaka Branch, Khairul Alam Chowdhury, chairman of AB Bank, Ifty Islam, chairman of Asian Tiger Capital Partners, and Anwar Sahid, chief executive at Mas Consultants and secretary general at JBCCI, among others, spoke at the programme.